Union Pacific Challenges Green Eagle Cross-Border Rail Plan

Union Pacific urges the US Surface Transportation Board (STB) to reject Green Eagle Railroad’s (GER) petition to build and operate a 1.3mile rail line in Eagle Pass, Texas, arguing the project is unnecessary, inefficient, and potentially disruptive to existing cross-border operations.

In comments filed on Aug. 25, Union Pacific said GER’s plan would insert a new carrier into the middle of the existing direct connection between Union Pacific and BNSF Railway on the US side and Ferromex on the Mexican side. The company contends this would increase costs, complicate operations, and degrade service quality rather than expand competition.

Union Pacific says that the Eagle Pass Gateway, the second busiest US-Mexico rail crossing, already has sufficient capacity to handle current volumes, with about 19 trains per day moving across the border. The company points to ongoing investments, including shifting crew changes to Clark’s Park Yard, building a new lead track by 2026, and exploring a double-track expansion by 2028, as evidence it can meet future demand without new entrants.

The railroad also raised operational concerns, pointing out that GER’s proposed 1.3mile track would be shorter than the 9,300-foot trains it would need to accommodate, creating congestion and delays in yard movements. Union Pacific further questioned GER’s financial viability, noting the project hinges on persuading Union Pacific and BNSF to reroute their traffic, a move Union Pacific has no intention of making.

The Green Eagle Project

Despite Union Pacific’s objections, GER, a subsidiary of Puerto Verde Holdings, is pitching the line as part of the Puerto Verde Global Trade Bridge, a 19mile corridor connecting Eagle Pass with Piedras Negras, Coahuila. The project includes a new double-track bridge over the Rio Grande and a commercial motor vehicle facility, though only the rail component falls under the STB’s jurisdiction.

Earlier this year, the STB’s Office of Environmental Analysis (OEA) released a Final Environmental Impact Statement (EIS) on the proposal, required under the National Environmental Policy Act (NEPA). The 150-page report assessed two route alternatives and recommended mitigation measures for noise, archaeological resources, and protection of migratory birds and endangered species.

Public interest has been high: 92 stakeholders submitted 104 comments during the review process. However, the OEA concluded no substantial revisions were necessary to the draft EIS.

What’s Next

With the EIS complete, the project now awaits the STB’s decision on whether to grant GER an exemption under 49 U.S.C. § 10502 or require a full application under § 10901. Approval could clear the way for financing and construction, while rejection may send GER back to the drawing board.

In 2023, trade between Eagle Pass and Piedras Negras exceeded US$37 billion. Advocates of the project say expanded infrastructure is needed to support growth, but Union Pacific insists its planned upgrades will be sufficient, MBN reports. 

The STB has set Sept. 15, 2025, as the deadline for replies to Union Pacific’s opposition. Its final ruling will determine whether the Green Eagle project advances to financing and construction, or stalls under regulatory scrutiny.